A lot of businesses think they need to bring in equity investors as soon as possible. Every business is different, but building your customer base and revenue stream is going to help you get a better equity deal.
When I ran a crowdfunding campaign for Kuli Kuli last May we had zero money, no full-time staff and a network that consisted mostly of other broke 20-somethings. And yet, within a day we had raised $22,000.
You have a great idea for a startup. All you need is some cash to get your business going. Oh, and a staff, and maybe a place to work that is not a coffee shop. But let's not get ahead of ourselves. Let's start with the money.
Depending on certain factors, it could be a great idea to put some portion of your portfolio into high risk assets like startups. But before you do, there are three major factors you need to consider to make sure start-up investing is appropriate for you.
The American Dream is alive and well in Generation Y; its entrepreneurial spirit as strong as any generation since the so-called Greatest Generation. It would be a shame if the inevitable erosion of hope in crowdfunding turns entrepreneurs away.
In the course of its first year any startup will confront issues it had not anticipated. Decisions will be made that are wrong. Every new business is different, and every one will encounter its own unique problems. Here are the lessons we learned from our mistakes at CircleUp in our first year.
According to the Kickstarter's data, there was $274 billion collected last year (+238 percent from 2011). In comparison, VC's invested $26.5 billion in 2012 (-10 percent from 2011). Do you see the difference?